Homework Answers
Par value of bonds = $102,000
issue price o bonds = $97,990
Discount on bonds payable = Par value of bonds-issue price o bonds
= 102,000-97,990
= $4,010
Semi annual amortization of bond discount = 4,010/8
= $501
Semi annual interest payment = 102,000 x 9% x 6/12
= $4,590
| Date | General Journal | Debit | Credit |
| June 30 | Bond interest expense | $5,091 | |
| Cash | $4,590 | ||
| Discount on bonds payable | $501 | ||
| December 31 | Bond interest expense | $5,091 | |
| Cash | $4,590 | ||
| Discount on bonds payable | $501 |
Kindly comment if you need further assistance. Thanks‼!
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P2
[The following information applies to the questions
displayed below.]
Legacy issues $740,000 of 7.5%, four-year bonds dated January 1,
2019, that pay interest semiannually on June 30 and December 31.
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Problem 14-4A Straight-Line: Amortization of bond discount LO
P2
[The following information applies to the questions
displayed below.]
Legacy issues $740,000 of 7.5%, four-year bonds dated January 1,
2019, that pay interest semiannually on June 30 and December 31.
They are issued at $680,186 when the market rate is 10%.
Please answer in this format please!
Journal entry worksheet Record the issue of bonds with a par value of $740,000 on January 1, 2019 at an issue price of $680,186....
Required information Problem 10-4A Straight-Line: Amortization of bond discount LO P2 The following information applies to the questions displayed below.) Legacy issues $560,000 of 9.0%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $507,831 when the market rate is 12% Problem 10-4A Part 2 2. Determine the total bond interest expense to be recognized over the bonds' life Total bond interest expense over life of bonds: Amount repaid...
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